The current structure of the world record industry is a tripartite one. In the past, there was EMI Records. After being acquired by Universal Music Group in 2011, there were only three large music record companies left, accounting for about 80% of the global music market.
After Zhang Yicheng arrived in New York, he and his father split up. He went to negotiate with the three major record companies, while his father and a group of senior executives from Pate Holdings went to the Eli Lilly Animal Health Company in Indiana, USA.
At the Mandarin Oriental Hotel on the top floor of the Time Warner Center, Zhang Yida met the CEOs of the three major record companies.
The three old men are Universal Music Group CEO Lucian Grainge, Sony President and CEO Hirai Kazuo, and Warner Music Group CEO Stephen Cooper.
In addition to the music business, the parent company behind these three companies is also one of the six major Hollywood film companies.
Unlike Sony, Universal and Warner's music businesses are split and operated independently.
However, Sony has not established a music group, and its recorded music business, songwriting copyright business, and Japanese Sony Music operate independently, and their management is somewhat chaotic.
Therefore, Zhang Yida was quite surprised that Kazuo Hirai, CEO of Sony's parent group, personally took action.
After shaking hands with the three people one by one, Zhang Yida and his subordinates took their seats in the conference room.
After a while, Universal Music CEO Grange said: "Mr. Zhang, the music licensing agreements signed by Zhonghe Group's DouShi, Kuaishou and Musical.ly with our three major record companies are about to expire.
So when I invite you to the United States, I hope that the four parties among us can negotiate about contract renewal."
Before TikTok and Musical.ly became popular, they signed a short-term music licensing agreement with the three major record labels.
It's not that Zhang Yida doesn't want to sign a long-term contract, but that the three major record companies are too stupid and refuse to sign a long-term contract.
After all, this is the new century, and the value of Internet music copyright has long been proven.
If you want to cheat the three major record companies, that is absolutely impossible.
Employees at the American branch have been discussing contract renewal with the three major record companies.
But the appetite of the three major record companies is too big. They ask for 500 million US dollars, and it is authorized by one company, and the three major record companies are 1.5 billion US dollars.
The negotiations have been at a stalemate. Seeing that it is soon 2018 and the copyright authorization is about to expire, Zhang Yida is also very anxious.
Musical.ly wants to expand around the world, and copyright issues are a top priority.
Most of the background music selected by users from the music library belongs to the three major record companies.
Take Chinese musicians as an example.
Universal Music Group includes Alan Tam, Jacky Cheung, Hacken Lee, Zhang Huimei, Lin Yilian, Eason Chan...
Sony Records includes Jay Chou, Huang Bo, Rainie Yang, Elva Hsiao, Luo Zhixiang...
Warner Music owns Li Ronghao, Yuan Weiya, Lou Yixiao, JJ Lin, Jolin Tsai, Jam Hsiao, Wilber Pan...
Basically, they were all caught up in one fell swoop, and even some unpopular little singers were signed to the three major record companies.
When it comes to music, you can't avoid these three major record companies.
Zhang Yida once asked his employees to calculate the annual copyright fees paid by Penguin Music, and the figure was over 3 billion yuan.
Of course, Penguin is quite ruthless, and many of the agreements it signs are for exclusive copyrights in Greater China or Mainland China.
This is why NetEase Cloud Music is so passive.
The moat Penguin has established in music copyright is unparalleled in China.
Zhang Yida sorted out his words and replied: "We are also willing to discuss the copyright renewal issue with the three major records.
But the quotation you made is so insincere.
Short video platforms are no better than music playing platforms. Users use music as background music for videos.
We cannot make it pay-to-use like the music playing platform.
In addition, for short video platforms, video content is the most important.”
Sony's chairman Kazuo Hirai smiled and shook his head, "Mr. Zhang, you are wrong.
We have specially analyzed the reasons why Musical.ly became popular, and found that a big success factor is the brainwashing music.
Without music, the short video would have no soul."
Warner Music CEO Cooper also echoed: "Yes, you can tell from the name of the Musical.ly software. The importance of music is irreplaceable."
He looked at Zhang Yida and spread his hands, "That's the fact. Musical.ly needs our help."
"Mr. Zhang, I believe that as long as the copyright issue is resolved, nothing can stop the rise of Musical.ly.
Zhonghe Group will also become a top technology company, comparable to FAANG."
Grange smiled, "But before that, we have to get rid of our worries."
Looking at Zhang Yida's posture, the three of them were convinced.
However, without copyright, Musical.ly cannot survive.
Zhang Yida shrugged and said with an indifferent expression: "Zhonghe Group has been in a state of serious losses, and it is unrealistic to spend a large amount of money on copyright!"
"So, Mr. Zhang is going to reject the friendship of the three major record companies?"
Cooper said this with a smile on his face, but his words were full of threats.
"Zhonghe Group can't survive anymore, so what kind of friendship do we need?"
Kazuo Hirai was very dissatisfied with Zhang Yida's frivolous attitude, and he did not look like the fifth richest man in the world at all.
He said with a straight face: "Is a company with a valuation of US$63.3 billion so insignificant to Mr. Zhang?"
"The collapse of Zhonghe Group will not bring any benefit to the four major record companies."
Zhang Yida continued: "The short videos on Musical.ly will be accompanied by a song, which is actually to promote the music.
This benefit is first passed on to the music playing platform, and then passed on to the record company from the music playing platform.
Whether it is copyright income or share income, the three companies behind it can be greatly improved.
In addition, short videos are also a brand new field.
In the past, income from music copyright in the Internet field mainly came from video platforms, music playback platforms, music sharing platforms, etc.
Now there is a brand new field, and we should work together to cultivate it instead of destroying it."
The CEOs of the three major records didn't say anything. They all thought carefully about the content of Zhang Yida's words.
The reason why the three of them offered such a high price and even stayed together was because they took a fancy to Zhang Yida's wealth.
If you are so rich, who will you kill if you don't?
Zhang Yida told the three people the story of fishing in a dry pond, "In the past, there were two brothers in China, and my father gave them two fish ponds before he died.
My brother is very hardworking and smart. He accumulates water in the fish pond little by little and scatters fish fry...
My younger brother is very lazy and eats fish from the pond every day, all year round, big and small...
The end result was that the elder brother worked hard for a while and had fish to eat every day, while the younger brother starved to death."
"This story is interesting. Is Mr. Zhang saying that we are like younger brothers?" Cooper asked.
"That's right, the way you eat now looks very much like my brother!"
Hirai Kazuo and the other two people looked at each other, and he said: "Since Mr. Zhang is unwilling to pay the copyright fee, I have another plan."
"What plan?"
“Our three major record companies have invested in Zhonghe Group with copyright authorization!”
Zhang Yida looked at Kazuo Hirai, this little devil has many evil intentions!
Cooper also helped: "This plan is beneficial to both of us, and we will be partners from now on.
Long-term friendships can only be maintained if there are common interests!”